Add on one SGX A50 contract for the account on the 4th December. This contract is a basket of 50 blue chip Chinese stocks listed on SGX for overseas traders, since non Chinese individual traders are not allowed to participate in the Chinese Futures market.
This is a damn bloody small futures contract (mini) worth only about USD 7,000 at the time of entry. I hated all these mini contracts because it's meant more for gamblers and not investors. A decent size futures contract should be worth at least USD 30,000 to USD 50,000. Exchanges are introducing more mini contracts so that they can generate more volume thus earning more comm. To hold USD 50,000 worth of stocks, a trader would need to buy 7 contracts paying a much higher comm amounting to USD 5.60. For the retail trader the comm would probably be 5 times more.
A CME Euro currency contract is worth USD 125,000 and the comm that I am paying is only USD 2.30, obviously trading the CME contract cost very much less in comm. These old contracts were introduced more than 20 years ago and contracted quaterly, March, June, September and December. The investor can hold the contract for 3 months then roll over to the next future month if they want to continue holding on to their view. But contracts introduced now are all monthly, reason being Exchanges make more money from long term investors rolling over their positions.
Futures contracts were first introduced in 1864 for the main purpose of hedging. In order to grow this industry, thousands of contracts were since being introduced by the various Exchanges with contract size getting smaller and smaller.
The cost of trading is a very important factor to the success of a trader, if the comm and spillage is too high, most likely the short term trader will not succeed.